XLRE vs XLU: Correlation & Overlap
Measured on weekly returns over the past three years, Real Estate Select Sector SPDR Fund (XLRE) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.60, a strong link. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLRE and XLU?
Across a 3-year window, the weekly returns of XLRE and XLU correlate at 0.60, strong. Recent behaviour matches the longer record: 0.58 over 1 year against 0.60 over 3. Stretching to 5 years gives 0.67, with an annualized covariance of 158.7 %².
By 3-year correlation, XLU places #60 of the 116 assets tracked against XLRE. Over the last 12 months XLRE came out ahead by 5.4 percentage points (+9.5% against +4.1%). Stability stands out here, with the rolling one-year correlation confined to 0.50 through 0.72.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
XLRE vs XLU: side by side
| XLRE (Real Estate Select Sector SPDR Fund) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +9.5% | +4.1% |
| 5-year return | +11.4% | +46.3% |
| Volatility (ann.) | 16.7% | 15.8% |
| Beta vs S&P 500 | 0.57 | 0.26 |
| Max drawdown (3Y) | -16.6% | -13.1% |
| Dividend yield | 3.12% | 2.70% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $8.6B | $23.1B |
| Sector / category | Sector ETF | Sector ETF |
On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between XLRE and XLU
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%). Only by XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), AEP (4.94%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | XLRE | XLU |
|---|---|---|
| 2022 | -26.2% | +1.4% |
| 2023 | +12.4% | -7.2% |
| 2024 | +5.1% | +23.3% |
| 2025 | +2.6% | +16.0% |
| 2026 | +12.4% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLRE and XLU good diversifiers for each other?
Only partially. A correlation of 0.60 means XLRE and XLU share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between XLRE and XLU?
The XLRE/XLU correlation stands at 0.60 on a 3-year window (1 year: 0.58, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for XLRE?
Only partially. A correlation of 0.60 means XLRE and XLU share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do XLRE and XLU overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlre-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlre-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLRE correlations · XLU correlations
